Marqeta, a US-headquartered card-issuing platform developer backed by financial services firm CommerzBank, online lending marketplace CreditEase and payment services providers Visa and Mastercard, closed its initial public offering at approximately $1.41bn yesterday.
The company raised an initial $1.22bn in the offering last week, issuing 45.5 million class A shares on the Nasdaq Global Select Market priced at $27 each. Its shares closed at $29.97 last night, and the underwriters have taken up the option to buy more than 6.8 million more shares.
Founded in 2010, Marqeta has built a technology platform that enables businesses issue physical or virtual payment cards as well as settle payment transactions. It made a $47.7m net loss in 2020 from $290m in revenue.
The IPO followed over $526m in funding for the company, which had raised an undisclosed amount from Mastercard in October 2020. CommerzBank’s venture capital arm, CommerzVentures, had joined Visa and CreditEase in Marqeta’s $260m series E round in mid-2019.
Investment manager Coatue Management led the series E round, which was also backed by Goldman Sachs, Vitruvian Partners, Spark Capital, Iconiq Capital, 83North, Geodesic Capital, Lone Pine Capital and Granite Ventures.
Visa, CreditEase, CommerzVentures, Goldman Sachs, Iconiq Capital, Granite Ventures, Commerce Ventures, 83 North and Granite Ventures were existing investors, while Marqeta’s earlier backers include IA Capital, Commerce Ventures and Max Levchin.
Marqeta’s existing shareholders all own a portion of about 485 million class B shares, with Granite Ventures holding 11.1%. Its notable shareholders include Iconiq Capital, which owns 8.6%, 83North (7.9%), financial services firm Discover Financial Services (5.4%) and Coatue Management (5.2%).
The company’s largest external shareholder, Granite Ventures, has a 10.1% stake diluted from 11.2%. Its other notable investors are Iconiq Capital (7.9% post-IPO), 83North (7.2%), financial services firm Discover Financial Services (4.9%) and Coatue (4.7%).
The offering’s lead book-running managers were Goldman Sachs and JP Morgan while Citigroup, Barclays, William Blair and KeyBanc Capital Markets had book-running manager roles and Nomura, HSBC, R Seelaus and Siebert Williams Shank were co-managers.
